EDI is a relatively cheap solution and was suitable as there were not many
suppliers in the market. Owing to low margins, price reduction through for example
e-marketplaces was not expected and hence not used. There are many different
varieties and products are bulky, which affects inventory space and costs. As turnover
is predictable there is scope for the adoption of e-commerce. The competition is
intensive due to a small supply market (four suppliers) and prices being driven down
by central framework contracts. This resulted in lack of pressure from suppliers to
adopt e-commerce as they are short of additional resources.